**Altcoins Market Faces Comprehensive Capitulation with Just 5% Supply Remaining in Profit Zone**

The altcoins market is reportedly entering a deep capitulation zone. According to the latest data from Glassnode, only 5% of the total altcoin supply is currently in profit. This prolonged capitulation phase coincides with a newly started sharp decline in Bitcoin (BTC) profits, highlighting a notable divergence in the current crypto market cycle.

### Deep Capitulation in Altcoins

The altcoin sector is undergoing considerable stress, as reflected by the fact that just a small fraction of the cumulative altcoin supply remains profitable. This situation points to a deep capitulation within the altcoin landscape. The so-called “Altcoin Capitulation Zone” signals not only extreme undervaluation but also a significant plunge in market sentiment.

Historical data from Glassnode further indicates that altcoins have been lingering in this capitulation territory for an extended period. This prolonged stagnation suggests limited upside potential and extended investor reluctance to re-enter the market.

### Capital Consolidates in Bitcoin, Indicating a Possible Turning Point

Meanwhile, Bitcoin (BTC) has recently experienced a decline in profits, creating a noticeable gap between its performance and that of altcoins. This divergence may reflect a broader shift in investor sentiment, with capital consolidating into Bitcoin—the flagship cryptocurrency.

This consolidation could be interpreted as a bearish sign for altcoins, indicating diminished confidence and a more cautious outlook. However, whether this divergence between Bitcoin and altcoins will persist or resolve in the near term remains uncertain.

### Conclusion

The current market dynamics reveal a challenging environment for altcoins, marked by deep capitulation and weak profitability. At the same time, Bitcoin’s performance suggests capital is favoring the more established cryptocurrency amidst market uncertainty. Investors will be closely watching how this divergence unfolds in the coming weeks.
https://bitcoinethereumnews.com/bitcoin/altcoins-undergo-deep-capitulation-amid-bitcoin-profitability-slump/